**Towards a New Economic Era in Europe: Ursula von der Leyen’s Roadmap and its Challenges**
On 29 January 2024, the European Commission, under the leadership of Ursula von der Leyen, presented a bold roadmap to revitalise the competitiveness of businesses on the Old Continent. Entitled “competitiveness compass”, this plan is intended to be a vigorous response to contemporary economic challenges, particularly in a global context marked by growing protectionism and the acceleration of digital technologies, particularly in artificial intelligence.
### A Worrying Economic Context
The presentation of this roadmap comes at a critical time. The war in Ukraine has profoundly disrupted energy supplies in Europe, leaving European companies struggling with exorbitant energy costs compared to their international competitors. According to a Eurostat report, EU companies pay on average 25% more for their electricity than those in the US, and up to 60% more than those in some Asian countries. This cost-effectiveness disparity is not only a question of immediate cost, but also a structural challenge that threatens the sustainability of European industries in the long term.
It is imperative to note that behind these figures lie major social and economic consequences. As companies seek to reduce costs, the risks of relocation are increasing, further increasing the pressure on governments to act effectively. The increase in economic tensions could also exacerbate social inequalities within Member States, where some regions could feel the effects of deindustrialisation more than others.
### Towards a Review of Environmental Standards?
One of the highlights of von der Leyen’s speech was the promise of a “simplification shock”. However, this statement came as a bolt from the blue in the already cloudy sky of environmental policies. The proposed reforms aim to ease regulatory standards that, according to economic actors, stifle innovation and make competitiveness difficult. Nevertheless, one question remains: at what price will these simplifications be implemented and what will be their consequences on the environment?
Interestingly, reducing legal constraints on businesses could also reinforce a sense of concern among environmentalists. In a world where the effects of climate change are becoming alarmingly apparent, shouldn’t economic vitality be combined with social responsibility? Recent data from the European Environment Agency (EEA) shows that investments in green technologies can generate up to three times more jobs than traditional industries while helping to reduce CO2 emissions.
### Energy: A Dependency to Reduce
The focus on developing renewable energies and, in some cases, the acceptance of nuclear power as a temporary solution to stabilise energy production show that the EU is trying to get out of the rut. However, this adjustment towards more diversified energy sources must be accompanied by a thorough reflection on the necessary infrastructure. According to a report by the International Energy Agency (IEA), Europe will have to increase its investments in the renewable energy sector by 35% by 2030 to meet its climate targets, a daunting task in a tense economic context.
### Competitiveness through Resource Sharing
One of the least discussed aspects of this new roadmap is the creation of a platform for the joint purchase of strategic raw materials. This could represent a tremendous step towards a circular economy where resources would be managed collaboratively. Such an initiative could not only ease pressure on the environment but also create innovative synergies between industries.
A McKinsey report indicates that resource sharing between companies can lead to a reduction in production costs of up to 15% for partners. By pooling efforts to purchase rare metals, for example, Europe could reduce its dependence on external markets and strengthen its economic sovereignty.
### Innovation in the Spotlight
The proposed revision of competition rules to encourage the consolidation of companies in the technology sector represents a turning point. Mario Draghi had already stressed the importance of a regulatory framework that values innovation above all, and the Commission has clearly taken note. However, such a revision must be in order not to compromise competition. Finding a balance between supporting innovation and managing competition is crucial, as excessive concentration could easily lead to abuses of dominant position.
### Conclusion: A Strategic Shift
The roadmap unveiled by the European Commission is undeniably a step in the right direction, but it must be closely scrutinized. Integrating innovation, environmental fairness and social solidarity will be crucial for the success of the proposed measures. Ultimately, competitiveness should not be synonymous with sacrifice, but rather a holistic vision that places citizens, industry and the environment on the same level as beneficiaries of sustainable growth.
The coming months will be critical: the successful implementation of these initiatives will depend on the buy-in of Member States and economic actors. In this era of rapid transformation, Europe must not only seek to catch up, but to reinvent an economic model that, beyond growth, places the well-being of future generations at the heart of all decisions.